2015 (7) TMI 1222 - SCH - Service Tax

Engineering Consultancy - recovery of tax for the year 1999 - the decision in the case of SAME ENGINES INDIA PVT. LTD. Versus COMMISSIONER OF C. EX. CHENNAI 2005 (3) TMI 558 - CESTAT CHENNAI contested - Held that - the provision of law authorising levy of Service Tax on service recipients came into force on 16-8-2002 without giving any retrospective effect to the said provision. Since the period of dispute is in respect of the year 1999 much prior to the aforesaid date of 16-8-2002 the CESTAT has rightly set aside the demand of Service Tax - appeal dismissed - decided against Revenue.

Summary

The Supreme Court dismissed the appeal seeking to recover Service Tax for "Engineering Consultancy" in 1999, as the law authorizing the levy of Service Tax on service recipients came into force in 2002 and did not have retrospective effect. The Customs, Excise and Service Tax Appellate Tribunal set aside the demand for Service Tax.